Venue's legacy events' will go unchanged

By MICHAEL ANDERSON manderson@thehawkeye.com

Friday

Sep 6, 2013 at 12:01 AM

Local groups that regularly hold events at Memorial Auditorium have little to fear from VenuWorks, the Ames-based company in negotiations with the city of Burlington to take over management of the downtown facility.

That's the message VenuWorks' vice president Joe Briglia wants to communicate to residents who have expressed concerns his company's presence at the auditorium will disrupt what he calls "legacy events" put on by groups like the American Legion, Civic Music and the Steamboat Days committee.

"We're very sensitive to their needs, and we're not trying to change the fortunes or the commerce of the building on their backs," Briglia said. "We're trying to really go after new business and enhance customer service levels."

According to Briglia, his company is reaching out to local groups to assure them whatever arrangements they have with the city for use of Memorial Auditorium will remain as they are. There will be no added fees and no splitting of generated revenues.

Briglia emphasized rental fee structures imposed by the city will remain in place and will continue to be managed by city officials.

"In matters of policy, the city will still have control and continue to determine where the boat's headed," Briglia said. "We're just providing more horsepower for the operation."

Much of the remaining negotiation process, according to Briglia, will be consumed with making specific assurances to various groups, most notably the Steamboat Days committee, that a VenuWorks-managed auditorium will be a good thing for the city.

Briglia said he hopes to schedule a meeting for next week with city and Steamboat Days officials to iron out a final proposal for acceptance by the city council.

Steamobat Days president Mike Johnstone said he has had several productive conversations with Briglia about how the liquor license and beer permit will be handled in regard to Burlington's summer music fest along the riverfront, but he will be more confident when a final offer is made.

The council tabled a resolution to contract with VenuWorks for a second time this Monday and is expected to take up the issue again at the Sept. 16 meeting.

The current version of the contract with VenuWorks the council will consider would be for five years. The company would receive a base management fee of $84,000 per year, broken up into monthly payments of $7,000 each. The fee would increase 3 percent per year to offset inflation.

VenuWorks also has proposed to receive 15 percent of all gross revenues from the sale of display advertising, naming sponsorship of the auditorium, soft drink pouring rights and premium seating plans. A 5 percent commission for all food- and beverage-related revenue was eliminated during negotiations in August.

Briglia said the portion of the contract referring to naming rights does not pertain to a desire by his company to rename Memorial Auditorium but rather to VenuWorks' rights to name events as it sees fit.

The company also would be eligible for an incentive fee based on any improvements made to the financial operations at the auditorium.

The company also has agreed to cap its annual budget so as not to exceed the roughly $300,000 the city pays to keep the auditorium operational.

"The proposed contract is tailored around Ottumwa's contract with VenuWorks," Briglia said in an email, referencing a similar property VenuWorks manages in Ottumwa. "Ottumwa city officials have confirmed their satisfaction with the job VenuWorks has done in turning around the Bridge View Center. After the first two years of operation of Bridge View Center under VenuWorks, Ottumwa experienced a net annual contribution reduction of $170,954 from the pre-contract contribution amount of $412,246."

The city would have an option to terminate the VenuWorks contract at the end of three years.

The two full-time and one part-time city employees at the auditorium would remain on the city payroll until the end of the year, after which time they would be considered for employment with VenuWorks.

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